Portsmouth leaders support pubs amid expected tax U-turn

A local councillor and city MPs have commented on an anticipated government climbdown over plans to increase business rates for pubs.

Business rates are a tax on non-domestic properties in England and Wales, charged by local authorities, and calculated using a property’s rateable value and a government-set multiplier.

Councils collect business rates from local businesses, keep a portion, and send the remainder to central government.

Chancellor of the Exchequer Rachel Reeves is expected to U-turn on a proposal that would have raised business rates for pubs by 76 per cent over the next three years.

The move follows weeks of pressure from the hospitality sector, with more than 1,000 pubs across the country taking part in a campaign that banned Labour MPs from their premises.

Amanda Martin, MP for Portsmouth North, said: “Late last year I brought together local publicans to hear directly about the pressures they’re under from business rates to wider red tape and to discuss what more the government can do to help pubs in Portsmouth thrive.

“I’ve since been lobbying Ministers on the practical points raised, and I welcome reports that the government is looking again at support for pubs. However, there is also more to do to cut unnecessary red tape and ease the wider cost pressures facing the hospitality sector.

“I’ll continue pressing for reforms that genuinely support our local pubs as vital community hubs.”

Stephen Morgan MP for Portsmouth South, said pubs are “at the heart of what makes Portsmouth the great city it is”.

“They keep our high streets alive, bring the community together and stimulate our local economy.

“I am committed to supporting pubs and those who work in the hospitality industry to secure their future and ensure the sector thrives.

“That’s why we recently brought together publicans and business leaders to hear views and ideas and to feed into the Government’s licensing reforms. It’s why I regularly host events in local pubs to show my support and encourage business from local people, run a Support Local Small Business campaign and take the concerns I hear back to Westminster.

“I recognise the challenges pubs have faced in recent years as well as pressures they continue to face. As MP, I will continue to ensure Portsmouth’s voice is heard to bring much-needed certainty and support to our city’s pubs”.

In a joint letter from Ms Martin and Portsmouth South MP Stephen Morgan to the Secretary of State for Business and Trade, Peter Kyle, they raised concerns over rising costs expressed to them by local publicans.

They advocated for VAT reform, particularly for non-alcohol sales, and explored the potential for tax relief linked to staff training or community facilities.

The letter concludes: “Overall, the message from Portsmouth’s landlords was clear: they want to thrive, to be trusted and to play their full part in reinvigorating our city’s hospitality scene.

“They are not asking for a lowering of standards only for fair, proportionate, and consistent regulation that recognises the vital social and economic role of our pubs.”

Conservative councillor Spencer Gardner welcomed the anticipated U-turn, describing pubs as places where the city’s communities connect.

“Our city’s identity is built on its history as a bustling naval port, where locals and sailors converged in a myriad of inns and alehouses. They aren’t just businesses.

“This climbdown follows a massive campaign that saw over 1,000 pubs nationwide – including the fantastic The Wellington, Old Portsmouth (Portsmouth’s oldest pub) – ban Labour MPs from their premises.

“It is a sad state of affairs when local landlords have to bar the government just to be heard.”